A proposal that would cap rent increases for qualifying seniors in rent controlled communities has a new author in the state Legislature.
Assemblyman Kansan Chu
Originally, this proposal was the centerpiece of AB 697 by Assemblyman Kansen Chu, D-San Jose. At the request of the California Apartment Association, however, Chu removed all wording from the bill related to rent increase exemptions for seniors. Instead, the bill would now simply provide a tax credit for senior citizens.
The Service Employees International Union, which is behind the proposed cap on rent increases for qualifying seniors, then turned to Assemblywoman Nora Campos to incorporate this plan into a piece of her legislation: AB 1229.
Campos agreed, making AB 1229 the Senior Citizen Rent Increase Exemption Program.
AB 1229 would create a demonstration project for Alameda, Ventura, Santa Clara and San Francisco counties. It would allow an eligible head of household in a rent-controlled property in these jurisdictions to apply to the local agency (e.g., rent control board) for a 12-month exemption from rent increases. It provides a tax credit to the landlord in an amount equivalent to the rent increase that the landlord otherwise would have received if not for that exemption.
Assemblywoman Nora Campos
“Eligible head of household” means a person with all of the following characteristics:
- He or she is 62 or older.
- He or she rents a property as his or her primary residence that is rent controlled and he or she is named on the lease for that property.
- His or her combined annual household income is $50,000 or less, more than one-third of which is spent on rent.
“Qualifying residence” means a property that is subject to rent control, not sublet, in compliance with the local rent control ordinance, and rent for which is not paid with a federal housing choice voucher, commonly referred to as a Section 8 voucher.
“Rent increase exemption order” is an order issued by a supervising agency (such as a rent control board) that exempts an eligible head of household renting a qualifying residence from increases in rent for a period of 12 months and entitles the landlord to a tax credit in an amount equivalent to the rent not received.
A landlord may apply in the taxable year in an amount equal to the amount of rent not received for that taxable year by a taxpayer, who is a landlord, as a consequence of a tenant receiving a rent increase exemption order under the Senior Citizen Rent Increase Exemption Program.
Related video:
At CAA’s Legislative Conference last month, Senior Vice President of Public Affairs Debra Carlton discussed the above the rent-cap proposal.
